As a side note: everyone saying categorical things like "never walk away from a former employer with code on your computer" - remember that they don't know what they're talking about. Categorical statements in these situations are never correct. This is about a life lived honestly and in good faith being turned around on you - don't feel like you did anything wrong, just take opportunities to learn.
Lastly, to everyone giving Smule the benefit of the doubt remember: this means nothing (NOTHING) to Smule and everything to the Shred Founders. If Smule turns out to be right (which seems ridiculously unlikely), then it still means nothing to them. If they are wrong, which seems to be the case, they're destroying a company and lives at the same time. Keep the stakes in mind when you're considering the situation.